Adil Al Hasan, Jakarta – Deputy Minister of Agriculture Sudaryono said 30 hectares of rice fields faced crop failures due to Vale Indonesia's oil distribution pipe leak in Lioka Village, Towuti, East Luwu, South Sulawesi.
The leak, which occurred around 20 kilometers from Vale's processing plant, led to the contamination of the surrounding river and the community's paddies. Sudaryono said, "About 30 hectares of rice fields failed to yield a harvest," during a meeting with the House of Representatives on Tuesday, September 16, 2025, at the Parliament Complex in Senayan, Jakarta.
The Gerindra Party politician mentioned that the affected farmers will receive compensation from PT Vale Indonesia due to the failed harvest. "The Ministry of Agriculture will promptly work to ensure the people's losses are handled," he said.
PT Vale Indonesia's Acting Corporate Secretary, Anggun Kara Nataya, previously said the leak, which was suspected to be caused by land movement, has been addressed.
Anggun maintained that Vale has formed an emergency response team to address the leak, and the team has temporarily contained the oil leak. "We conducted oil spreading mitigation by installing containment barriers, including using oil booms and oil traps," she said.
Additionally, PT Vale has been testing the water and soil quality on site. Vale has also coordinated with local authorities such as the Disaster Management Agency, Environmental Office, police, and the Indonesian military to handle the leak in a transparent manner.
"The source of the leak has been successfully identified and contained, and thus far, the entire technical team has been working around the clock to stop the oil flow as the main priority," said Anggun.
The company has also opened a complaint and information center for those affected by the leak. Vale claims responsibility for restoring the environment and addressing any resulting social impacts.
The leak recovery process is carried out gradually, covering ecosystem restoration in affected areas, socio-economic support for the community, and the evaluation and strengthening of pipeline safety systems to prevent recurrence. "All recovery processes will be conducted in close coordination with the East Luwu Government and relevant stakeholders, guided by the principles of transparency and public accountability," she stated.
Local government demands responsibility from PT Vale
Meanwhile, South Sulawesi Governor Sudirman Sulaiman has urged Vale to take responsibility and promptly address the impact of the pipeline leak. The leak has polluted fields, potentially leading to failed harvests.
Sudirman stated that he has coordinated with the East Luwu Regent to address the issue. "I have also instructed the South Sulawesi Energy and Mineral Resources Agency to directly oversee the field and ensure that immediate handling measures are taken to minimize and recover the resulting impact," he said as quoted by Antara on Tuesday, August 26, 2025.
Furthermore, Sudirman stated that Vale should have high security standards in managing processing facilities, including emergency recovery. He urged the company not to neglect risks and the safety of the community.
Based on initial reports, the pipeline leak originated from the former mine operation water distribution line. The liquid material then seeped and flowed into the surrounding settlements, fields, and parts of the river.
Although there have been no reports of casualties, the surrounding community has expressed concern as the water has already been contaminated, and the fields are at risk of failed harvests.